Thursday, June 12, 2003

In Svezzese v. Duratek, Inc., the Fourth Circuit in an per curiam opinion for the panel of Judges Luttig, Motz, and Shedd affirmed the dismissal of securities fraud claims brought against a company engaged in waste processing, where the company had erred in its estimation of its costs, which turned out to be higher than expected, leading to a restatement of its financial position. The Court concluded that the complaint failed to meet the heightened pleading requirement as to motive, concluding that "[n]one of these allegations evidence fraudulent intent or recklessness sufficient to survive a motion to dismiss."